Malaysian palm oil futures fell for a sixth straight session on Monday, dropping early as traders foresaw rising output amid slowing demand and again in the evening tracking rival oil prices.
Palm oil futures for August delivery on the Bursa Malaysia Derivatives Exchange fell 2.1% to 2,525 ringgit (US$618) per tonne at the closing trade.
Traded volumes stood at 50,003 lots of 25 tonnes each, higher than the 2015 daily average of 44,600 lots.
The contract hit an intraday low of 2,524 ringgit, its weakest since May 25, after falling 3.2% last week, which was the sharpest weekly loss since the end of April.
"In general, traders feel production is getting higher and exports may not be able to catch up," said a trader based in East Malaysia. "I think the market is bottoming out and will soon go up again when stocks are low."
The market declined sharply in the evening, tracking rival oils, said another trader.
"China's Dalian Commodity Exchange posted sharper losses and soy slipped into negative territory," the trader said, referring to soyoil futures on the Chicago Board of Trade.
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